PROJECT SUMMARY This proposal contributes to the National Institute on Alcohol Abuse and Alcoholism's mission by expanding knowledge about how policy may reduce harmful drinking. Specifically, the purpose of this study is to 1) investigate whether changes in state cigarette prices impact current smoking, 2) determine whether price effects on smoking vary by gender, age, poverty status, race and ethnicity, 3) investigate the effects of changes in state cigarette prices (through excise taxation) on current, binge, and heavy alcohol drinking patterns, and 4) determine whether effects of state cigarette prices on current, binge, and heavy drinking vary by gender, age, poverty status, race, and ethnicity. This research is guided by the economic theory of consumer demand and social ecological theory. Demand theory holds that an increase in the price of a good (cigarettes) will decrease the consumption of that good. Also, an increase in the price of that good will decrease consumption of another good (alcohol) if the two goods are complements, and increase consumption of the other good if they are substitutes. This is known as a cross-price effect. Social ecological theory maintains that human behavior is influenced by the interaction of individual (e.g. demographic) and environmental (e.g. policy) factors at multiple levels. Social ecological theory provides guidance for understanding potential reasons for differences in response to price by gender, age, poverty status, and race/ethnicity. Six years of cross sectional data will be pooled from the 2001-2006 Behavioral Risk Factor Surveillance System surveys (BRFSS), a nationally representative household telephone survey conducted annually with a random sample of adults 18 years of age and older. The main dependent variables are current smoking and current, binge, and heavy drinking. The main explanatory variable is average cigarette price, which varies by state and year. A series of multivariate logistic regressions will be estimated that incorporate state fixed effects to address possible unobserved state differences in characteristics affecting drinking. Individual demographic variables, state alcohol policies and economic indicators will be included as controls. PUBLIC HEALTH RELEVANCE: PROJECT NARRATIVE Alcohol and tobacco use are related to enormous health and economic costs in the U.S., and raising prices on these products through taxation is a proven strategy to reduce their respective use. As nearly 25% of Americans use alcohol and cigarettes concurrently, it is important to know whether and how recent large increases in cigarette prices through taxation may impact alcohol drinking patterns. Differential impacts by demographic group are also important to understand so that program and policy decisions affecting the health of the nation may be better, and more equitably, informed.